IFC Seeks ‘Ambitious’ Reforms for Inclusive Growth in Nigeria

The Country Manager for the International Finance Corporation (IFC) in Nigeria, an arm of the World Bank, Eme Essien Lore, has stressed the need for what she described as ambitious reforms in Nigeria, to stimulate economic growth in the country.

Lore, who said this during the Nigeria 2020 Economic Outlook organised by Deloitte in Lagos recently, said good policies are instrumental in having inclusive growth agenda, “and there is no question about that.”

According to her, there is an incredible amount of dynamism from the private sector in Nigeria.

However, she pointed out that there is a broken social contract in the country, saying that the populace doesn’t trust government, “and therefore, for example, we have a situation where there is low tax compliance.”

“I think we also have a fractured business contract between government and the private sector. We don’t have enough trust between these two critical stakeholders in the ecosystem.

“It is pretty low and I think it would take years to build that trust and there must be commitment on both sides to make that happen,” she added.

According to the IFC country manager, the multilateral agency would continue to advocate for good and robust policies, as well as for trust between the private sector and government.

“We should be in a hurry in Nigeria,” she said.

Lore noted two areas policymakers in the country should focus on.

“There is a policy-driven part, which focuses on government making the right decision and putting in place robust policies. That is very important and we should always advocate for that.

“There is also a part that requires more innovation and collaboration in the private sector and focusing much more in the sub-national level, which I think there are lots more opportunities at that level.

“Essentially, what I am saying is that there is a part the private sector has to play. It doesn’t entirely depend on policy. We think there is absolutely an opportunity for that in Nigeria.

“I do think we have a very dynamic private sector in Nigeria and things can be done outside the policy framework that are very impactful in Nigeria,” she said.

Continuing, Lore added: “Why is inclusive growth important in Nigeria? It is important because of the impact it has on people, and ordinary, hardworking Nigerians, who are essentially the backbone of this society.

“For more than 10 years in Nigeria, there was a situation where we had about seven per cent growth. But if we are very honest with ourselves, we would know that it was jobless growth.

“In fact, in some areas in the country, then, in spite of the fact that we had growth, there was increasing poverty.”

According to her, statistics today show that many people in Nigeria are suffering.

“Is it malnutrition, youth

employment or maternal health? For me, it is the issue of literacy that is worrisome. Statistics shows that only 19 per cent of Nigerians who are primary school graduates are literate. “That is, only 19 per cent of people who leave primary school in Nigeria can read. That hits me in my heart.

“This and other scaring statistics make it imperative for us to pursue inclusive growth. We must be relentless about pursuing inclusive growth.

“We must be absolutely dogged about this. It matters because it affects people in their everyday lives,” she added.

She stressed the need to put the private sector in the middle in the quest to deliver inclusive growth in the country, saying “It is not government that would deliver on it, it is the private sector that can deliver on that agenda.”

“But we don’t think there is a simple solution, but we do believe that boosting productivity will accelerate growth and help create more and better jobs.